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Amendments To The Law "on Private Pension Funds '

Original Language Title: Grozījumi likumā "Par privātajiem pensiju fondiem"

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The Saeima has adopted and the President promulgated the following laws: the amendments to the law "on private pension funds" "make law" on private pension funds ' (the Saeima of the Republic of Latvia and the Cabinet of Ministers rapporteur, 1997, nr. 14; 1998, 2, 19; 1999, no. 13. no; 2000, no. 13) follows: 1. Article 1: to replace in paragraph 4, the word "company" with the word "company";
make paragraph 8 by the following: ' 8) pension plan member — physical person or for which the employer or other physical person shall make contributions to private pension fund and has the right to receive retirement benefits under this Act and pension plan; "
make the following paragraph 11: "11) related parties: two or more persons, if they meet one of the law" on enterprise income tax "related to these business signs;"
to supplement the article with the following paragraph 12: ' 12) derivative financial instruments, financial options, futures contracts, forward contracts, interest rate swaps and currency swaps ".
2. in article 3: replace the first paragraph, the words "Republic of Latvia Enterprise register registered nonprofit finance and credit company" by the words "established in the financial and commercial credit company";
make the second paragraph as follows: "(2) the Pension Fund may issue only registered shares. The Pension Fund's shares may not be put into public circulation. ';
replace the third paragraph, the word "business" with the word "action".
3. Turn off the article 4, fourth paragraph, the words "directly or via his employer."
4. in article 6: make the first paragraph by the following: "(1) on the closed pension fund founders (shareholders) can only be persons (employers), which concluded with a collective membership of pension funds agreement.";
to make the fourth subparagraph by the following: "(4) If, after an open Pension Fund pension fund start-up shareholders no longer corresponds to the second part of this article the requirements of it holds shares in commercial law enforceable. If none of the open pension fund shareholders no longer corresponds to the second paragraph of this article, the requirements laid down in the financial and capital market Commission shall set a deadline by which shareholders must forfeit shares a person who meets the requirements in the second subparagraph of this article, set the open pension fund shareholder, or impose other measures to be taken for this pension fund business for. "
5. in article 7: replace the first paragraph, the words "the law" On joint stock companies "and" for nonprofit organizations "with the word" Commercial ";
replace the second paragraph, the words "Republic of Latvia enterprise register" with the word "commercial".
6. in article 8: replace the first paragraph, the words "the law" On joint stock companies "and" for nonprofit organizations "with the word" Commercial ";
replace the second paragraph, the words "Republic of Latvia enterprise register" with the words "commercial register authority";
replace the third paragraph in the introductory part, the words "Republic of Latvia enterprise register" with the word "commercial";
replace the third subparagraph in paragraph 1, the words "the law" On joint stock companies "and" for nonprofit organizations "with the word" commercial ".
7. in article 9: to express the third subparagraph of paragraph 10 by the following: ' 10)-rules that will respect the pension plan, and investment-related risks; ";
to supplement the article with a fifth by the following: "(5) a pension plan may provide that the pension plan member reaches retirement age specified in the plan may continue membership in pension plans, in addition to the agreement with the Pension Fund for the payment of retirement benefits. If the pension plan provides for the possibility to receive retirement benefits, the Pension Fund at the same time with the pension plan shall be submitted to the Finance and capital market Commission, the Pension Fund's Board of Directors approved the provision of payment methodology. "
8. Article 10: make the third paragraph as follows: "(3) a pension plan for members participating in the pension plan directly, concluding with a public pension fund for individual participation agreement. If individual membership contributions to the pension plan in the event of the participant's benefit by another party, individual membership, the contract shall also indicate the sponsoring person's identification data, which is provided under the criminal money-laundering prevention laws and regulatory requirements. Individual provisions of the contract of participation in the Pension Fund Governing Board shall submit financial and capital market Commission. Pension Fund may conclude individual membership agreement under the financial and capital market Commission rules, if the financial and capital market Commission 10 days of individual provisions of the contract of participation received no reasoned objections raised about non-compliance with the requirements of this Act. ";
to supplement the article with a fifth by the following: "(5) the Pension Fund Governing Board shall approve and submit to the financial and capital market Commission, the order in which the pension fund records and records of individual and collective membership agreement (hereinafter referred to as the membership agreement). Membership registration and records the contract may only be carried out electronically, enabling third parties to track the amendment of registry entries. For immediate registration of participating contracts and records in accordance with approved procedure is the responsibility of the Management Board of the Pension Fund. Membership agreement is effective only after it has been registered and the registration number of the individual and of each contract specify the instance. Membership agreement terms and conditions shall not conflict with the provisions of a pension scheme. "
9. Express article 11 the fourth paragraph as follows: "(4) the pension plan member reaches the pension plan established by the retirement age, you can do the following: 1) terminate participation in the pension plan and remove any accumulated retirement benefits;
2) continue participation in the pension plan under the provisions of a pension scheme and individual participation agreement. "
10. Express article 12, the second subparagraph by the following: "(2) the members of the pension plan or pension fund in it contributed funds immediately (no later than the next working day) are included in the pension plan member's individual account."
11. in article 14: make the first paragraph by the following: "(1) the governing body of the pension fund the setting up and operation of the commercial law regulation, in so far as this law provides otherwise. The closed Pension Fund Council shall not be required. ';
replace the third subparagraph of paragraph 3 and 4, the word "entrepreneurship" (fold) with the word "business" (fold).
12. Replace article 18, second paragraph, the words "General Assembly" with the word "meeting".
13. Article 20: replace the first part of the word "company" with the word "company";
in the fifth subparagraph, replace the words "related companies (company)" with the words "related persons".
14. Replace article 21, in the fourth paragraph, the words "related companies (company)" with the words "related persons".
15. Express article 23 by the following: ' article 23. Pension capital-principles and rules (1) pension capital funds and other assets that are managed in accordance with the specific provisions of the pension plan (the pension plan assets), according to the valuation of the pension scheme rules of the exercise lay the investment policy, which provides a pension plan participant the accrued retirement benefits increase over a longer period. Investing the assets of the pension scheme must comply with the precautionary principle, which provides risk reduction, investment security, quality and liquidity under the pension plan member accumulated retirement benefits obligation.
(2) a pension plan may invest the assets of this statutory investment objects, abiding contribution limits.
(3) the assets of the pension scheme may invest: 1) in the Republic of Latvia, the Republic of Estonia, the Republic of Lithuania, the Member States of the European Union and the European economic area (hereinafter EEA) countries, State and local government securities issued or guaranteed in;
2) of the Organisation for economic cooperation and development member countries emitted or guaranteed securities, in case the national long-term foreign currency credit rating by the international rating agency rating is investment grade;
3) to international financial institutions the emitted or guaranteed securities, in which members of one or more Member States of the European Union or EEA countries;
4) shares and other equity securities, if they are included in the Republic of Latvia, the Republic of Estonia, the Republic of Lithuania, a European Union Member State or EEA registered the country's stock exchange (regulated market) or equivalent official list (official list), as well as paragraph 2 to this part of the country referred to in a registered stock exchange — the international stock exchange of the full members (members) — official list;
5) debt securities of the company are included in paragraph 4 of this part that stock exchange (regulated market) in official lists;

6) company of equity and debt securities, if they are not included in the stock exchange (regulated market), but the rules of issue of securities is intended that this part of the securities referred to in paragraph 4, the stock exchange (regulated market) officially listed will be included within one year from the date of subscription to these securities undertaken;
7) term credit institution which received the license for operation of the credit institution in the Republic of Latvia, the Republic of Estonia, the Republic of Lithuania, a European Union Member State or an EEA country and has the right to provide financial services in those countries;
8) investment funds or investment companies in the common pielīdzināmo (hereinafter referred to as the Fund), if a trust fund is established in this part, paragraph 1 and 2 in that country and it has the obligation to redeem shares of the Fund at the request of investors;
9) real estate that is established in this part referred to in paragraph 1;
10 in the financial derivative instruments).
(4) the kind of pension plan assets, subject to the following restrictions: 1) investments investments in one country, local or international financial institutions the emitted or guaranteed in securities may not exceed 35 per cent of pension plan assets. Those limitations be exceeded in relation to the State securities issued, if the pension plan assets are securities of six or more single issuer's emissions and the emission value of each securities separately do not exceed 20 percent of the pension plan's assets;
2) one company investments in debt securities issued may not exceed 10 per cent of pension plan assets;
3) investment company in the capital of one of the emitted securities may not exceed 10 per cent of pension plan assets and 10 percent of the share capital of the issuer and of the number of voting shares;
4) deposits in one credit institution may not exceed 20 per cent of pension plan assets, but total claims against the credit institution shall not exceed 25 per cent of pension plan assets, except for the requirements of the request against the holder of the funds;
5) investments in one investment fund shall not exceed 10 per cent of pension plan assets and 10 per cent of the Investment Fund's net assets;
6) in one single investment in immovable property shall not exceed 10 per cent of pension plan assets, but the total investment in immovable property shall not exceed 15 per cent of pension plan assets;
7) investment in transferable securities issued by the Pension Fund of the company in the group, as well as commercial companies, which have concluded with the Pension Fund of collective membership agreement may not exceed 5 per cent of the pension fund established the pension plan assets;
8 in one group) investment in securities issued in the company must not exceed 25 per cent of pension plan assets.
(5) the fourth paragraph of this article, 1. and 4. the restrictions referred to in paragraph 1 exceed a period of 12 months after the first pension plan member's contribution, if the pension plan assets is less than the 100 000 lats.
(6) the pension plan's assets may not be used for a loan and pension plan funds prohibited to grant loans.
(7) If a pension plan's assets used for repurchase or purchase with atpakaļpārdošan transactions, obligations arising from the following transactions shall not exceed 50 per cent of pension plan assets.
(8) a pension plan may invest the assets of derivative financial instruments, if it is possible the continuous, accurate and objective evaluation of derivative financial instruments and the relevant investments are made to guard against certain pension plan asset value fluctuation risks which may result from a change in the asset price or exchange rate, and if the derivative financial instruments is included in the third part of this article, paragraph 4 of the stock exchange (regulated market) official list or if the financial instrument contains commitments entered into by a credit institution which received the license, and which is authorized to provide financial services in the Republic of Latvia, the Republic of Estonia, the Republic of Lithuania, the Member States of the European Union or EEA countries.
(9) the assets of the pension scheme may invest in the currency in which intended to pay the accrued retirement benefits, subject to the following conditions: 1) the assets of a pension plan may invest with unmatched commitment, if the total amount of such contribution does not exceed 30 per cent of pension plan assets;
2) pension contribution plan assets in the same currency with unmatched commitment must not exceed 10 per cent of pension plan assets.
(10) the Management Board of the pension fund duty is: 1) in accordance with the pension plan-terms prepare and submit financial and capital market Commission information on the investment policy of the pension scheme;
2) regularly, at least every three years to assess the specific investment policy and submit the financial and capital market Commission further implemented the pension plan investment policy for a detailed description;
3) immediately (no later than three days) to submit financial and capital market Commission information on changes to the investment policy of the pension scheme.
(11) the Pension Fund Governing Board provides members of the pension scheme and the pension fund shareholders free access to information on investment policy, as well as the inserts that information into the Pension Fund's website on the internet, if any, or a pension fund shareholder's website on the internet if the pension fund does not have their own websites on the internet. "
16. Article 25 of the turn in the fifth subparagraph, the words "the month and".
17. Article 27: replace the first paragraph, the words "the law" On joint stock companies "and" for nonprofit organizations "with the word" Commercial ";
replace the second paragraph, the words "General Assembly" with the word "meeting";
replace the third paragraph, the words "Republic of Latvia enterprise register" with the word "commercial".
18. Replace article eighth, the word "Assembly" with the word "meeting".
19. transitional provisions be supplemented with points 3 and 4 by the following: "3. the pension funds, which created and licensed pension plans the proposed rules do not meet-that rule until 2002 December 31, prepare and submit financial and capital market Commission for registration of the pension plan amendments.
4. Up to 30 June 2003 for the pension funds, subject to the pension plan member interest, take all the necessary measures to coordinate the disposition of the assets of the pension scheme with this statutory investment restrictions and pension plan-rules. "
The Parliament adopted the law of 2002 on October 10.
State v. President Vaira Vīķe-Freiberga in Riga in 2002 29 October editorial comment: the law shall enter into force with 12 November 2002.